Decoding the JPEX Scam: Buying Tokens with Kidneys, Guaranteed Profits, and KOLs Earning Millions a Month
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Decoding the JPEX Scam: Buying Tokens with Kidneys, Guaranteed Profits, and KOLs Earning Millions a Month
JPEX might have been a scam from the beginning—the exchange was just a front.
Navigating Web3 tides with focused insightsAuthor: Carl
Editor: junge
"Never would have thought JPEX could go wrong!"
To many victims of the JPEX case, JPEX was a compliant exchange—endorsed by numerous celebrities and KOLs, with advertisements everywhere from the MTR to city streets. "It was impossible not to believe."
After the incident came to light, victims realized the KOLs had all used manipulative tactics filled with exaggerated and false claims.
"Sell your kidney to add more position," "Borrow money from your wife, parents, and children to increase holdings," "This year’s target is 0.1U; if it doesn’t reach that, come find me," "A hundred-bagger opportunity—go all in," "Market cap may surpass USDT and BNB"...
After the incident, the KOLs involved in JPEX all claimed to be victims themselves. However, judging from police actions, nearly all of them may be suspected of conspiracy to defraud. In fact, behind their relentless promotion of JPEX was high compensation paid by JPEX.
Some victims said JPEX might have been a scam from the very beginning—the exchange merely a front.
1. All-in, minimum 3x return
On October 8, Cai Xiaodong ("Dongji"), founder of "Hong Coin Talk," was arrested by police upon returning to Hong Kong via airport. To date, 28 people have been arrested in connection with the JPEX case.
Haden (pseudonym), one of the JPEX victims, was unsurprised by Dongji's arrest. He said, "The way he flipped from aggressively promoting JPEX to claiming he's against it is too fast—he did what he did and must take responsibility."
Previously, Cai posted on social media: "I stand in opposition to JPEX." He also revealed he had "lost over 95% of his assets" due to the JPEX incident, calling it the biggest mistake of his life—trusting a fraudulent platform like JPEX.
Haden is one of many JPEX victims. Before this year, he had only heard of cryptocurrencies but never engaged directly. In the JPEX incident, he "lost over a hundred thousand at once, and probably will never touch crypto again—I'm almost getting scolded to death by my family."
Regarding the JPEX scam, Haden said: "I had doubts from the start, but for various reasons, you can't help but believe it."
In March, Haden attended a Web3 seminar introduced by a friend. There, Dongji presented JPEX’s advantages and returns, revealing he had previously launched four "all-in" campaigns for JPC, each perfectly timed, yielding at least 3x returns.
"Minimum 3x return? Impossible," was Haden’s initial reaction. But after persuasion from friends, he decided to join the group chat to learn more, eventually depositing 1,000 HKD into the app.
"I had a gambler’s mentality—1,000 bucks I could afford to lose. What if I made money? Can't miss an opportunity to earn."
After purchasing JPEX’s native token JPC, Haden started receiving daily interest, and the price of JPC kept rising—making him increasingly excited.
Later, Haden learned from friends that he could buy more JPC and stake it as a node, potentially earning over 60% annual returns. But he hesitated—after all, it required depositing tens of thousands of dollars.
In May, Dongji held a seminar at Kowloon Bay International Trade & Exhibition Centre titled "JPC’s Future After Licensing in June." He claimed Hong Kong’s new licensing regime was about to take effect, and JPEX was partnering with a listed company to apply for a license. JPC was about to explode, with a 2024 target price 10 times higher.
At the event, Dongji launched a limited-time offer called "Date with Dong," where users who exchanged a certain amount of USDT on that day could participate. Dongji promised: If JPC’s price fell below 0.02U on January 1, 2024, he would refund 30%-50% of the exchanged USDT amount.
According to Haden, the venue, which held 1,500 people, was nearly full, with an extremely enthusiastic atmosphere. Dongji shared emotional investment stories, convincing everyone that JPC could only rise, never fall. "Dongji even said he’d personally pay back losses—if anyone dared question it on site, they’d probably fear getting beaten up."
What finally convinced Haden to increase his position was his friend’s argument: "Hong Kong policy supports it, JPEX ads are everywhere—from MTR stations to city streets—and so many celebrities promote JPEX. How could it possibly be fake?" Indeed, Haden had seen JPEX ads across Hong Kong, including on MTR trains, buses, buildings, and massive outdoor billboards.
So, Haden deposited 50,000 HKD to become a JPC node. "I actually put in relatively little—many others added positions of hundreds of thousands or even millions."
After that, the digital assets in Haden’s account kept growing, the community buzz remained high, and more people continued adding positions—strengthening his belief in his decision, prompting further investments.
"If nothing went wrong, my digital assets would’ve long exceeded 200,000. But now, they’re nearly zero."
On October 4, JPEX announced a "DAO Stakeholder Dividend Plan," claiming 68% of users agreed. The platform would transition to DAO operation, allowing holders of DAO dividend rights voting power. Users who subscribed could gradually receive platform dividends.
Haden said: "This is a complete scam. I never voted, and neither did most people around me—where did the 68% come from?"
Even more unbelievable: other cryptocurrencies Haden held on JPEX—USDT, ETH, etc.—were automatically converted into JPC.
Currently, JPEX shows JPC priced at 0.008U—a drop of over 80% compared to two weeks ago—and it cannot be exchanged for USDT or withdrawn.
2. Sell kidney to add position, won’t rise? I’ll compensate
Multiple victims told Techub News similar experiences—nearly identical tactics using wildly exaggerated claims about JPEX investment returns.
Victim Savia (pseudonym) said: "Coin Shao speaks the boldest—he says whatever sounds most outrageous."
Coin Shao, also known as "Coin Boy" or "BSY," is a cryptocurrency KOL. According to media reports, he used to work as a swimming coach and was sentenced to 160 hours of community service for stealing a mobile phone. Around 2015, he earned his first fortune—"an eight-digit sum"—from Bitcoin and calls himself the "First Man of Blockchain in Hong Kong."
As shown by Savia, in a widely circulated video within the community, Coin Shao said: "If JPC price drops, you must add position—add at 10%, 20%, 30%, 40%. If it drops 50%, sell your kidney to add. If it drops 60% or 70%, borrow money from your wife, parents, siblings—go all in. This year, JPC’s target price is 0.1U. If it doesn’t reach that, come find me."
At an event, Coin Shao claimed the importance of the JPC chain rivals Hong Kong’s infrastructure: "As long as you’re bold enough, anyone can become Coin Shao."
Coin Shao once co-hosted a livestream with another KOL, Lam Cho. Lam Cho has been promoted as the "Future Chief Executive of Hong Kong."
According to media reports, after being released on bail in the JPEX case, Lam Cho said: "Every time, I only become stronger. Ultimate step: Chief Executive of Hong Kong."
Lam Cho often draws attention through shocking acts. Previously, he was fired by an insurance company for coldly exploiting a murder case for publicity. He once claimed nine out of ten Miss Hong Kong contestants were unattractive, publicly shared semi-nude photos of his girlfriend, questioned whether Grace Chan and her brother were biologically related to their parents, and offered HK$1 million for DNA testing.
Another victim, Ado (pseudonym), said Lam Cho styled himself as the "godfather of the crypto circle," claiming JPC’s market cap would surpass USDT and even BNB. He also revealed he had heavily invested in JPC, putting in over 7 million HKD.
In July, Lam Cho publicly announced he had applied to become a JPEX partner. Multiple victims said his relationship with JPEX was far from ordinary.
According to one victim, Lam Cho renamed his community "Crypto Justice League," claiming he wanted to clear false accusations against Hong Kong’s crypto community. But "mainly he wanted to defend JPEX. When someone kept exposing JPEX’s dark side, Lam Cho tried every way to discredit the whistleblower, even claiming someone hired hitmen with big money to smear JPEX."
Additionally, Lam Cho claimed customers could trade across different platforms through his OTC shop. In reality, he only allowed trades via JPEX, arguing: "There’s a lot of dirty money, but we cooperate with JPEX, ensuring fund safety and better after-sales service."
Regarding JPEX risks, Lam Cho posted on social media: "The only risk is platform collapse. But based on my judgment and analysis, given its momentum, it’s extremely safe."
Among KOLs and institutions promoting JPEX, CryptoPARD might have influenced the largest number of people. One victim revealed CryptoPARD has over ten thousand clients, nearly all using JPEX. By this estimate, the actual number of JPEX victims far exceeds the police-reported figure of over 2,000 complainants.
According to CryptoPARD’s official website, it is Hong Kong’s first cryptocurrency academy, with branches in Mong Kok and Tsim Sha Tsui. Its founder and CEO is Xiao Long Sir (Chen Xiaolong). Media reported that on October 5, Chen Xiaolong and a former director of CryptoPARD were arrested by Hong Kong police.
3. Million-dollar monthly income—was the exchange just a front?
Since the JPEX incident broke, controversy has been widespread, and victims remain confused.
Haden told Techub News: "Why did so many celebrity KOLs endorse JPEX? Why were there so many JPEX ads on Hong Kong’s MTR, buses, and streets? With celebrities promoting it everywhere in Hong Kong, how could you not believe it? This demands an explanation."
Victim Ado believes behind the KOLs’ aggressive promotion lies substantial incentives promised by JPEX.
Ado showed Techub News a suspected screenshot of JPEX’s monthly salary standards for KOLs. It indicated that recruiting over 50 subordinates qualifies one as a JPEX partner. If subordinates’ total assets exceed 60,000 USDT, the promoter earns $2,000–2,500 monthly. If referrals exceed 200 people and total assets surpass 500,000 USDT, monthly earnings reach around $20,000.
Lam Cho once said on social media he had taught 5,000 students, "My old insurance clients are coming back—clients investing hundreds of thousands, more than a dozen in two consecutive days." He also claimed his average monthly income from insurance was 300,000 HKD before, but now exceeds a million HKD per month.
According to media reports, KOL Bai Bing, who previously refused to cooperate with JPEX, revealed that in June he received an offer from JPEX worth nearly a million RMB annually to promote the platform and its cryptocurrency—requiring only over ten videos in a year. "If someone with my level of fame gets nearly a million, imagine how much famous celebrities must have received?"
Haden said the KOLs promoting JPEX are now being punished, but no one is accountable for the ads on MTR, buses, and streets. "Without those ads, many wouldn’t have believed JPEX—far fewer people would’ve been scammed."
According to media reports, advertising industry insiders said they were approached by JPEX mid-year. "They were generous—willing to spend seven-figure sums—but strangely, when we asked for company documents, data, ad selling points, and direction, they couldn’t provide any. They just kept saying 'JPEX is great.' We became suspicious about the company’s background and ultimately didn’t cooperate."
Ado said JPEX was never a real cryptocurrency exchange—the exchange was just a cover. "We don’t even know who the boss is. Rumor says it’s a locally born and educated 'King of Gamblers.' JPEX operates completely differently from any other exchange. Other exchanges give rebates based on trading fees, but JPEX bases commissions on the total asset value of recruited users—essentially profiting from recruiting new members, just like a Ponzi scheme."
According to JPEX’s official website, referral commissions can reach up to 100,000 USDT, depending on tier levels, which are determined by the number of invites and the average assets of valid invitees.
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